Staffing & Employment News
From the Redfish Technology May Newsletter.
According to Bloomberg, the growth in corporate profits is an encouraging sign for a V-shaped recovery. The economy is expected to grow at 4% this year, which is up from the 3% prediction derived from a survey of economists earlier this year. This capital will be invested in equipment and hiring according to Joseph LaVorgna, chief U.S. economist in New York at Deutsche Bank Securities Inc.
The recent Business Roundtable survey shows 29% of participating CEOs plan on increasing hiring over the next 6 months (10% more than last quarter). This is the first time in two years that more companies anticipated higher employment than lower employment in the survey.
Such predictions are backed up by the recent report by The Conference Board’s Help Wanted OnLine™ (HWOL) Data Series, which shows job demand has surged 870,000 for an increase of 27% over the past six months. “In a welcome sign for the job market, employers began the spring hiring season with a large 223,000 increase in demand for workers,” said June Shelp, Vice President at The Conference Board.
According to the ADP (Automatic Data Processing) National Employment report for April, private sector employment increased by 32,000 from March to April on a seasonally adjusted basis. The May 7th jobs report was even stronger than expected, and did not include Census jobs. Payroll jobs in April grew 290,000. April’s boost topped estimates and combined revisions for March and February were up 121,000, and February was revised from negative to positive. This marks the 3rd consecutive month of private employment growth.
Lawrence Summers, Director of the National Economic Council for the Obama administration, noted that “as conditions get better, more people decide to look for work and are counted in the labor force, so sometimes it’s frustrating and the progress doesn’t show up immediately in the unemployment rate.”
A January Towers Watson employer prediction survey showed caution and optimism. Notable was the caution that investment needs to be assured nonetheless in talent retention and engagement as the business climate improves.
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